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Dar Al Arkan lists $600m sukuk on Nasdaq Dubai

Filed on November 13, 2019
Dar Al Arkan lists $600m sukuk on Nasdaq Dubai

(Supplied photo)

Dar Al Arkan Real Estate Development Company chairman Yousef bin Abdullah Al Shalash on Wednesday rang the market-opening bell at Nasdaq Dubai to celebrate the listing of a $600 million sukuk.

The listing from the Saudi company supports the accelerating development activities of Dar Al Arkan. The company's projects include flagship integrated residential communities across Saudi Arabia, as well as its 'I Love Florence Tower' in Downtown Dubai.

The five-year sukuk was more than 2.5 times oversubscribed. It brings Dar Al Arkan's total Sukuk value listed on Nasdaq Dubai to $1.6 billion, following the listings of two sukuks of $500 million each in 2017 and 2018.

This issue was Dar Al Arkan's 10th issue since 2007 and the sixth tranche of its current $2 billion programme.

The issue is for a five year term due in February 2025 with a coupon rate of 6.75 percent.

Commenting on the listing, Al-Shalash said, "With over US$1.5 billion of subscriptions, our latest Sukuk issuance was very well received by the market. It is a testament to our strong relationship with the global debt capital markets and a big vote of confidence from investors in our stewardship of their capital. The funds raised provide us with the capital to dynamically invest in our business activities across Saudi Arabia as we see the market conditions improving and prepare for the next upcycle.

He added, "As the region's international exchange, Nasdaq Dubai provides our Sukuk with high visibility to regional and international investors as well as an efficient listing platform regulated to international standards."

For his part, Essa Kazim, Governor of Dubai International Financial Market, Secretary-General of Dubai Islamic Economy Development Centre and Chairman of Dubai Financial Market, said, "Dar Al-Arkan's new listing further strengthens the close Islamic capital markets ties between the UAE and Saudi Arabia, which greatly benefit issuers, investors and the wider economy.

"We will continue to develop our relationships with Sharia'a-compliant entities across the GCC to underpin Dubai's expansion as the global Capital of Islamic Economy under the initiative launched by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai," Kazim noted.

MSCI, a leading provider of research-based indexes and analytics, added Dar Al-Arkan to its Emerging Markets Index following Saudi Arabia's inclusion in the index in May 2019. Dar Al-Arkan was also one of 12 Saudi-listed companies on which Nasdaq Dubai launched futures contracts in January 2019.

Abdul Wahed Al Fahim, Chairman of Nasdaq Dubai, said, "We are delighted to deepen our relationship with one of the Middle East's largest real estate developers and its diverse Sukuk investors. This listing underlines the increasing success of Nasdaq Dubai's strategy of attracting high quality issuers of Sukuk across a wide range of industry sectors."

Dar Al-Arkan's assets include about 12.4 million square metres of projects under development. The company has handed over 15,000 residential units in Saudi Arabia and holds a land bank with a book value of circa 17 billion Saudi riyals.

The company's latest Sukuk underlines Dubai's role as one of the largest global centres for Sukuk listings by value with a current total of US$64.3 billion. UAE issuers account for 45 percent of these by value and 55 percent are from issuers based in other countries.

Dar Al-Arkan's latest Sukuk listing on Nasdaq Dubai took place on 16th October, 2019, said the Nasdaq Dubai press release. - Wam

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